Mortgages and Finance

City & Guilds urges Govt to address skills gap to hit 1.5m new homes – Mortgage Strategy

Summary:

City & Guilds has urged the government to address the severe skills shortages in the construction sector, as 75% of firms struggle to recruit skilled workers. The industry faces a critical skills crisis, with 54% doubting the ability to meet housing and net-zero targets. To achieve the government’s 1.5 million homes goal, the sector needs 161,000 additional workers, but it loses 50,000 annually due to an ageing workforce and lack of new entrants. Rising costs, local labour challenges, and insufficient training opportunities are key barriers.

What This Means for You:

  • If you’re in construction, invest in upskilling to meet demand for green and sustainable building practices.
  • Employers should explore partnerships with educational institutions to create accessible training programs.
  • Policymakers must prioritize funding and flexible training routes to attract and retain talent.
  • Failure to act could delay housing and net-zero targets, impacting economic growth and sustainability goals.

Original Post:

City & Guilds has called on the government to take ‘immediate and strategic action’ to address the critical skills shortages in the construction sector, after a survey reveals that three quarters of construction firms are struggling to recruit the skilled workers they need.

The survey found that 84% of respondents believe the industry is facing a critical skills crisis, with 54% expressing doubt that the sector can meet the government’s housing or net-zero targets.

It suggests that to meet the government’s 1.5 million homes target, the homebuilding sector will need to recruit 161,000 additional workers. This represents a 30% increase on the current workforce.

However, it highlights that the industry is losing an estimated 50,000 skilled workers each year due to an ageing workforce and a lack of new entrants.

Data shows that rising costs (46%) are the main barrier to recruitment within the sector, followed by local labour market challenges (41%).

Demand for job-ready hires (36%) is another barrier, while 26% say lack of interest among young people and 28% say stricter immigration laws are also creating a problem.

A City & Guilds report highlights that 85% of employees see training as vital for career progression, and 59% believe more training opportunities would attract new talent.

However, 61% say it’s difficult to access funded training, pointing to a significant gap in provision.

Although the sector is evolving with new technologies and environmental standards, only 51% of workers have received training in sustainable construction, despite nearly half of employers reporting shortages in this area.

City & Guilds suggests a three-pronged approach to closing the gap.

This includes improving perceptions of the sector and embed construction skills earlier in the education system and provide accessible training for those entering the sector from other industries.

In addition, it suggests promoting lifelong learning and ensuring training equipment and funding meet modern demands, including green skills.

City & Guilds chief executive Kirstie Donnelly says: “To meet the Government’s ambitious housing and net zero targets, we need a fundamental reset in how we attract, train, and upskill talent across the construction sector.”

“This means stronger collaboration between industry, education, and government, with targeted investment and flexible training routes.”

Extra Information:

Construction News provides updates on industry trends and challenges. Government Skills Strategy outlines plans for lifelong learning and workforce development. Royal Town Planning Institute offers insights into sustainable urban development and housing targets.

People Also Ask About:

  • What are the main causes of the construction skills shortage? Ageing workforce, lack of new entrants, and rising costs.
  • How can the construction industry attract young talent? By improving sector perception and offering accessible training programs.
  • What is the impact of the skills shortage on housing targets? It could delay the government’s 1.5 million homes goal.
  • Why is training in sustainable construction important? It’s essential to meet net-zero targets and address employer shortages.
  • What role does government play in solving the skills crisis? It must invest in training and collaborate with industry and education.

Expert Opinion:

The construction sector’s skills crisis is a systemic issue requiring immediate action. Without targeted investment in training and collaboration between industry, education, and government, the UK risks falling short of its housing and sustainability goals. A focus on green skills and lifelong learning is critical to future-proofing the workforce.

Key Terms:

  • Construction skills shortage
  • Sustainable construction training
  • Government housing targets
  • Green skills in construction
  • Construction workforce development
  • Net-zero construction goals
  • Recruitment challenges in construction



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